Social Security in Theory and Practice (II): Efficiency Theories, Narrative Theories, and Implications for Reform

166 countries have some kind of public old age pension. What economic forces create and sustain old age Social Security as a public program? Mulligan and Sala-i-Martin (1999b) document several of the internationally and historically common features of social security programs, and explore "political" theories of Social Security. This paper discusses the "efficiency theories", which view creation of the SS program as a full of partial solution to some market failure. Efficiency explanations of social security include the "SS as welfare for the elderly" the "retirement increases productivity to optimally manage human capital externalities", "optimal retirement insurance", the "prodigal father problem", the "misguided Keynesian", the "optimal longevity insurance", the "government economizing transaction costs", and the "return on human capital investment". We also analyze four "narrative" theories of social security: the "chain letter theory", the "lump of labor theory", the "monopoly capitalism theory", and the "Sub-but-Nearly-Optimal policy response to private pensions theory". The political and efficiency explanations are compared with the international and historical facts and used to derive implications for replacing the typical pay-as-you-go system with a forced savings plan. Most of the explanations suggest that forced savings does not increase welfare, and may decrease it.

Social security, retirement, and the single-mindedness of the electorate

We propose a positive theory that is consistent with two important featuresof social security programs around the world: (1) they redistributeincome from young to old and (2) they induce retirement. We construct avoting model that includes a political campaign or debate prior to theelection. The model incorporates single-mindedness of the groups that donot work: while the workers divide their political capital between their age concerns and occupational concerns , the retired concentrate alltheir political capital to support their age group. In our model, theelderly end up getting transfers from the government (paid by the young)and distortionary labor income taxes induce the retirement of the elderly.In addition, our model predicts that occupational groups that work morewill tend to have more political power. The opposite is true fornon-occupational groups (such as the elderly). We provide some evidencethat supports these additional predictions.

Social security in theory and practice (II): Efficiency theories, narrative theories and implications for reform

166 countries have some kind of public old age pension. What economic forcescreate and sustain old age Social Security as a public program? Mulligan and Sala-i-Martin (1999b) document several of the internationally and historically common features of social security programs, and explore "political" theories of Social Security. This paper discusses the "efficiency theories", which view creation of the SS program as a full of partial solution to some market failure. Efficiency explanations of social security include the "SS as welfare for the elderly" the "retirement increases productivity to optimally manage human capital externalities", "optimal retirement insurance", the "prodigal father problem", the "misguided Keynesian", the "optimal longevity insurance", the "governmenteconomizing transaction costs", and the "return on human capital investment". We also analyze four "narrative" theories of social security: the "chain letter theory", the "lump of labor theory", the "monopoly capitalism theory", and the "Sub-but-Nearly-Optimal policy response to private pensions theory".The political and efficiency explanations are compared with the international and historical facts and used to derive implications for replacing the typical pay-as-you-go system with a forced savings plan. Most of the explanations suggest that forced savings does not increase welfare, and may decrease it.

What social security: Beveridgean or Bismarckian?

Why are Bismarckian social security systems associated with largerpublic pension expenditures, a smaller fraction of private pension andlower income in-equality than Beveridgean systems? These facts arepuzzling for political economy theories of social security whichpredict that Beveridgean systems, involving intra-generationalredistribution, should enjoy larger support among low-income people andthus be larger. This paper explains these features in a bidimensionalpolitical economy model. In an economy with three income groups,low-income support a large, redistributive system; middle-income favoran earning-related system, while high-income oppose any public system,since they have access to a superior saving technology, a privatesystem. We show that, if income inequality is large, the voting majorityof high-income and low-income supports a (small) Beveridgean system,and a large private pillar arises; the opposite occurs with lowinequality. Additionally, when the capital market provides higherreturns, a Beveridgean system is more likely to emerge.

Is altruism important for understanding the long-run effects of social security?

This paper quantifies the effects of social security on capital accumulation and wealth distribution in a life cycle framework with altruistic individuals. The main findings of this paper are that the current U.S. social security system has a significant impact on capital accumulation and wealth distribution. I find that social security crowds out 8\% of the capital stock of an economy without social security. This effect is driven by the distortions of labor supply due to the taxation of labor income rather than by the intergenerational redistribution of income imposed by the social security system. In contrast to previous analysis of social security, I found that social security does not affect the savings rate of the economy. Another interesting finding is that even though the current U.S. social security system is progressive in its benefits, it may lead to a more disperse distribution of wealth.

Indentifying human capital externalities: Theory with an application to US cities

The identification of aggregate human capital externalities is still not fully understood. The existing (Mincerian) approach confounds positive externalities with wage changes due to a downward sloping demand curve for human capital. As a result, it yields positive externalities even when wages equal marginal social products. We propose an approach that identifies human capital externalities whether or not aggregate demand for human capital slopes downward. Another advantage of our approach is that it does not require estimates of the individual return to human capital. Applications to US cities and states between 1970 and 1990 yield no evidence of significant average -schooling externalities.

Empresas, instituciones y red social: la Compañía Hispanoamericana de Electricidad (CHADE) entre Barcelona y Buenos Aires

En este trabajo se presenta la vinculación entre la Casa de América de Barcelona y la Compañía Hispanoamericana de Electricidad (CHADE) en Buenos Aires a través del estudio de tres momentos: primero, la fundación de la asociación y la presencia de Francisco Cambó en el Centro Jurídico Iberoamericano; segundo, la fundación de la CHADE para salvar los capitales alemanes del pago de reparaciones económicas a los Aliados por su participación en la Primera Guerra Mundial; y tercero, la conversión de la asociación americanista barcelonesa en Instituto de Economía Americana (IDEA)-Casa de América para reforzar su naturaleza internacional en consonancia con la Sociedad de Naciones, así como el declive de la asociación por la interrupción de remesas de capital del Cono Sur que llegaban a Barcelona en forma de subsidios para la asociación americanista.

Por una Europa de la inclusión social

El autor destaca en este articulo que la inmigración extracomunitaria supone para los paises de la Unión Europea una ocasión histórica en la que se pone a prueba la capacidad de las instituciones y los ciudadanos europeos para mantener la cohesión social y al mismo tiempo respetar las diferencias étnicas y culturales. Es lo que él llama formular un nuevo contrato social, en el que la inclusión social de nacionales y extranjeros conduzca a la ciudadanía compartida y la participación política, en lugar de a una integración que no es tal, sino una forma más de asimilación. En este proceso esencial a toda democracia pensada para sociedades plurales, es capital, recuerda el autor, reparar constantemente en el lenguaje utilizado y evitar 10s planteamientos dicotómicos del tipo "nosotros/ellos" que llevan en su germen los prejuicios discriminatorios y el conflicto social

Endogenous growth with capital in R&D production functions

[eng] In this paper we claim that capital is as important in the production of ideas as in the production of final goods. Hence, we introduce capital in the production of knowledge and discuss the associated problems arising from the public good nature of knowledge. We show that although population growth can affect economic growth, it is not necessary for growth to arise. We derive both the social planner and the decentralized economy growth rates and show the optimal subsidy that decentralizes it. We also show numerically that the effects of population growth on the market growth rate, the optimal growth rate and the optimal subsidy are small. Besides, we find that physical capital is more important for the production of knowledge than for the production of goods.

Endogenous growth with capital in R&D production functions

[eng] In this paper we claim that capital is as important in the production of ideas as in the production of final goods. Hence, we introduce capital in the production of knowledge and discuss the associated problems arising from the public good nature of knowledge. We show that although population growth can affect economic growth, it is not necessary for growth to arise. We derive both the social planner and the decentralized economy growth rates and show the optimal subsidy that decentralizes it. We also show numerically that the effects of population growth on the market growth rate, the optimal growth rate and the optimal subsidy are small. Besides, we find that physical capital is more important for the production of knowledge than for the production of goods.

L'atur de llarga durada de les dones majors de 45 anys a Catalunya: una anàlisi exploratòria tenint en compte la classe social i la divisió sexual del treball

This article provides an in-depth study of long-term female unemployment in Catalonia.Long-term unemployment statistics reveal which social groups are most likely to experience difficulty re-entering the labour market. In this case, we found that women are mainly affected by this type of labour exclusion, in particular poorly qualified, working-class women who are aged over 45 and with family responsibilities.The article aims to explore how the overlapping of factors such as gender, age, social class, origin and the division of work based on gender are related to long-term female unemployment. Moreover, we were able to detect which conceptual tools provide us with the production/reproduction paradigm so as to be able to analyse the future of female unemployment. The methodology we used combines quantitative and qualitative approaches. On the one hand, the analysis of secondary statistical data focusing on Catalonia is useful in understanding the situation from a macro-social perspective. On the other hand, an exploratory discussion group enables us to investigate social imaginary practises among unemployed working class women aged over 45. This discussion group was held in Igualada -capital of the Anoia region - an area of Catalonia deeply affected by unemployment in the current economic crisis.

De l'empresari individual a l'empresari social: les societats com a eina que facilita la transició intergeneracional a l'empresa familiar

La constitució d'una societat de capital pot constituir un excel·lent instrument per facilitar la transició intergeneracional en aquelles empreses el titular dels quals és una persona física i els descendents han pres la decisió d'entrada a temps complet en l'organització empresarial. En aquest sentit, el trànsit de la condició d'empresari individual a empresari social no només permet la conservació de l'empresa més enllà de la vida del seu actual titular simplificant el procés hereditari sinó que permet gaudir, entre d'altres, dels avantatges de la limitació de responsabilitat per deutes i de la separació del patrimoni civil dels socis del patrimoni necessari per l'exercici de l'empresa reduint així els riscos econòmics patrimonials. Addicionalment, la relativa flexibilitat del règim jurídic de les societats de capital permet que els socis tinguin la possibilitat d'adequar-lo a les seves específiques necessitats i conveniències.

Del empresario individual al empresario social: las sociedades como herramienta que facilita la transición intergeneracional en al empresa familiar

La constitución de una sociedad de capital puede constituir un exelente instrumento para facilitar la transición intergeneracional en aquellas empresas en la que su titular es una persona fisica y sus descendientes han tomado la decisión de entrada a tiempo completo en la organización empresarial. En este sentido, el tránsito de la condición de empresario individual a empresario social no solo permite la conservación de la empresa más allá de la vida de su titular actual, simplificando el proceso hereditario, sino que además permite disfrutar de las ventajas de la limitación de la responsabilidad por deudas y de la separación del patrimonio civil de los socios del patrimonio necesario para el ejercicio de la empresa, reduciendo así los riesgos económicos patrimoniales. Adicionalmente, la relativa flexibilidad del régimen jurídico de las sociedades de capital permite que los socios tengan la posibilidad de adecuarlo a sus necesidades específicas.

Using narratives to study the impact of social networks on the educational paths of immigrant students

This paper presents the qualitative data collection process aimed at the study of the impactsocial relations and networks have on educational paths of immigrant students. In theframework of a R & D longitudinal study funded by the Ministry of Science and Innovation(2012-2014), the research team tracked the path of 87 immigrant students, from whom only 17successfully achieved the transition through the first and second year of Post-16 Education.A vast range of literature notes that relationships are an important part of migration process andsocial integration analysis, as well as school history in terms of success or failure. Through thefieldwork researchers collect the personal networks of all immigrant students from 3 highschools who were at that time attending last course of compulsory school. The network structureinfluences their social capital and therefore determines the resources, goods and types of supportindividuals can access. All these aspects are influential elements in the configuration anddevelopment of academic trajectories of immigrant students.At the end of the second year of Post-16 Education (two years later), the study captures personalnetworks of these students again, analyses and discusses their evolution and influence on theirpaths through qualitative interviews. Such interviews facilitated the discussion of theirrelationships while providing interesting narratives that are presented in the text. In order to do so, the biographical interpretive narrative method of interviewing is implemented.

Using narratives to study the impact of social networks on the educational paths of immigrant students

This paper presents the qualitative data collection process aimed at the study of the impactsocial relations and networks have on educational paths of immigrant students. In theframework of a R & D longitudinal study funded by the Ministry of Science and Innovation(2012-2014), the research team tracked the path of 87 immigrant students, from whom only 17successfully achieved the transition through the first and second year of Post-16 Education.A vast range of literature notes that relationships are an important part of migration process andsocial integration analysis, as well as school history in terms of success or failure. Through thefieldwork researchers collect the personal networks of all immigrant students from 3 highschools who were at that time attending last course of compulsory school. The network structureinfluences their social capital and therefore determines the resources, goods and types of supportindividuals can access. All these aspects are influential elements in the configuration anddevelopment of academic trajectories of immigrant students.At the end of the second year of Post-16 Education (two years later), the study captures personalnetworks of these students again, analyses and discusses their evolution and influence on theirpaths through qualitative interviews. Such interviews facilitated the discussion of theirrelationships while providing interesting narratives that are presented in the text. In order to do so, the biographical interpretive narrative method of interviewing is implemented.